Can't see CDN cost issues being a problem if you're a virtual ISP.
If they were to do that they would need a big internet backbone and to host their own platforms etc. Would cost more than they would want to pay plus the support of it all. Companies already do this for other companies etc, why make the wheel again?
Ah the issue with streaming.
So the more people that change to streaming the higher the cost to deliver for sky. With streaming you need to have the content delivery network (CDN's) the more people that signup and stream the higher the cost is.
This is different to satellite. Satellite was a fix cost over a term of the contract with the provider, this fixed cost depends on the number of channels, if they are HD etc. Once you had this sorted you could put as many customers on this and the cost would not increase unless you upgrade channels to HD or added more. So the more satellite customers the lower the delivery cost per sub and the higher the profit.
Steaming is the other way around, higher cost, lower profits per sub.
The starter packs etc tend to be lower cost programs or even "buy this we will give you that" content deals. The starter packs were used to offset the pricing of other packs (i.e. if there was no starter/basic then sports etc would be more).
Also for years people have been saying "let me pay for the programs i want to watch" Now we have Netflix, disney+, neon etc. People are slowly working out that the cost of each different service can be much more than what the pricing is for sky. Content is also now locked behind studio's own streaming services so it's harder to get them in streaming service that does a range of different programs/movies.
Side note: I use to work there :P I am one of the 18% drops in employees :P
are not the costs of streaming declining every yr so in the future streaming might be more cost effective than satelite. so sky foot in each basket if there still around makes sense
are not the costs of streaming declining every yr so in the future streaming might be more cost effective than satelite. so sky foot in each basket if there still around makes sense
It is good that they have a foot in both areas now. Satellite tends to be fixed cost over a number of years, unlike streaming where it can go up and down depending on usage etc. But streaming could get cheaper than satellite but a lot of customers would need to leave satellite and I am sure sky would kill it before that if it was running at a loss
If they were to do that they would need a big internet backbone and to host their own platforms etc. Would cost more than they would want to pay plus the support of it all. Companies already do this for other companies etc, why make the wheel again?
This is something that Chorus are already working on.
Anyone else topping up at 0.15c? Happy to see guidance was not only met but beaten and FY21 forecasts upgraded. Hard to not see great value when the comparing the market cap to FCF.
Anyone else topping up at 0.15c? Happy to see guidance was not only met but beaten and FY21 forecasts upgraded. Hard to not see great value when the comparing the market cap to FCF.
If I knew the market would be like this today I should have waited instead of topping up at 0.167 yesterday
Bookmarks